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Japan and South Korea are returning to China: local power batteries accelerate the "bundling" of car companies

electromechanical; Mechanical and electrical products; New energy vehicles; Power battery; Market conditions the pattern of China's power battery industry is undergoing drastic changes: on the one hand, the differentiation within the industry is intensifying. The market share of leading enterprises is getting higher and higher, and the living space of marginal enterprises is further squeezed, and the 28 law is gradually highlighted

according to the latest data released by the China automotive power battery industry innovation alliance, in May this year, a total of 41 power battery enterprises in China's new energy vehicle market achieved loading support, down 2 from April and 20 from 61 in the same period last year. Among them, the top three enterprises in terms of output produced a total of 7.5gwh, accounting for 75.6%; The top five enterprises produced a total of 8.4gwh, accounting for 84.8%, and the market share of leading enterprises increased significantly

on the other hand, China's power battery industry is about to face the impact of foreign forces. Japanese and Korean battery companies that have left China's new energy vehicle market for three years began to frequently deploy in China, woo new partners, and try to make a comeback

on the evening of June 12, Geely Automobile () announced that its subsidiary Shanghai Huapu Guorun, which indirectly owns 99% equity, and LG Chemical will establish a joint venture, mainly engaged in the production and sales of electric vehicle batteries, with each party holding 50% equity. It is worth noting that Geely has previously established a joint venture with Ningde times. Obviously, car companies are not willing to put their eggs in the same basket. By bundling many different enterprises, they can control the voice of the core components of new energy vehicles

multinational auto giants Volkswagen and Toyota also adopt such strategies. In January this year, Toyota and Panasonic announced the establishment of a vehicle battery joint venture, but on June 7 this year, they announced the addition of two Chinese battery manufacturers, Ningde times and BYD, as partners; In addition to signing a large order with Ningde times to ensure the supply of batteries in the Chinese market, Volkswagen announced in May this year that it would build a power battery factory in lowersaxony, Germany. On June 13, it also announced that it would inject 900million euros into northvolt, a Swedish electric vehicle battery manufacturer, to jointly carry out the R & D and production of electric vehicle batteries

the relationship between car enterprises and power battery enterprises is no longer the previous single supplier relationship, and the way of cooperation has become more complex, involving the game of interests

it is obvious that car companies are seeking to have more say. It is inevitable to process the collected images through computers in the stretching process. The interest game between car companies and battery companies will be more intense in the future. But at the same time, in the face of the attack of foreign car companies and battery companies in Japan and South Korea, the domestic new energy vehicle industry chain will prosper and coexist, and the trend of heating together will be more obvious. On June 17, the Puritan, Secretary General of Zhongguancun new battery technology innovation alliance, accepted the 21st Century Business Herald

Japan and South Korea batteries have made a comeback

in recent years, with the strong promotion of policies, the new energy vehicle market has not only grown rapidly, but also led to the development of related industrial chains. Under the tide, Chinese power battery enterprises are booming. However, the rapid rise of battery enterprises such as Ningde era cannot be separated from the government's support for local enterprises

on June 20, 2016, the Ministry of industry and information technology released a list of enterprises that meet the "standard conditions for automotive power battery industry" (hereinafter referred to as "standard conditions"). Samsung, LG, SK and other Japanese and Korean power battery companies in China were not included in the list. This directory is directly linked to the catalogue of recommended models for the promotion and application of new energy vehicles (hereinafter referred to as the "recommended catalogue"). Only new energy vehicles that use power batteries that meet the requirements of the code can be listed in the recommended catalogue and receive new energy subsidies

this has virtually built a protective wall for China's power battery enterprises. At that time, the independent brand enterprises of LG and Samsung batteries adopted by Chang'an, great wall, SAIC, FAW, Chery, Geely, JAC, etc. had to look for local battery suppliers again, and Ningde era was hot

in terms of the original intention of the policy, the products produced by battery enterprises that are required to enter the recommended catalogue can directly promote the development of local battery enterprises to a certain extent, and help to exclude low-level battery enterprises and eliminate those enterprises that grab the air but have no technical strength

in terms of subsidy policies for new energy vehicles, there are high requirements for the energy density of batteries, and car companies have a great demand for high-quality production capacity. In terms of the popularity of electric vehicles, many consumers have concerns about the safety of batteries, and have higher requirements for the quality of batteries. Ningde era has a certain brand effect. These factors make car companies prefer Ningde era. A high-level official from the new forces of car making told me

with the gradual outbreak of China's new energy vehicle market, Ningde era has become a hot topic for car companies, with an endless stream of orders. However, the popularity of car companies for Ningde era has also made Ningde era unable to keep up with demand. Domestic car companies such as SAIC, GAC, Dongfeng, FAW and Geely have also decided to establish joint ventures with Ningde times to ensure the stable supply of batteries

however, with the gradual decline of subsidies for new energy vehicles until they are cancelled, Japanese and Korean power battery enterprises that have left China's electric vehicle market for a period of time are accelerating their return to the world's largest new energy vehicle market, and China's power battery industry will enter a new reshuffle period

in fact, Japanese and Korean power battery enterprises have long coveted China's power battery market after the decline of subsidies. In July, 2018, LG Chemical held a signing ceremony with Nanjing Jiangning Binjiang Development Zone. LG Chemical plans to invest $2billion in the Binjiang Development Zone to build a power battery project, which was started in October last year and is scheduled to start mass production in October this year; The new phase II plant project of Samsung Huanxin power battery was officially started in Xi'an on November 29 last year

some insiders said that the layout was started in 2018 precisely for the smooth production of its batteries in China. Building a factory is the first step, and obtaining battery orders from Chinese car companies is the second step. From Geely's offer of olive branch to LG Chemical, we can see that even if we miss the Chinese electric vehicle market for a few years, Japanese and Korean battery enterprises still have a strong attraction for OEMs

the signal released by the state is to encourage foreign battery enterprises to build factories in China. In the next two years, the competition between Chinese and foreign leading enterprises will certainly intensify. Yu qingjiao expressed to

domestic battery enterprises urgently expand production

while Japan and South Korea speed up the pace of entering the Chinese market, Chinese power battery enterprises are also racing against time. It will take time for Japanese and Korean battery enterprises to release their production capacity in China. Seizing this time gap, domestic battery enterprises are expected to speed up reaching a certain proportion of battery purchase agreements with vehicle enterprises. Yu qingjiao expressed to

after several years of market-oriented competition, the pattern of the domestic power battery industry has initially taken shape, with structural overcapacity but insufficient high-quality capacity. After a round of survival of the fittest, Ningde times and BYD have determined to lead the market

in the past few years, Ningde times has reached cooperation agreements with a number of domestic and foreign car companies. At present, Ningde era has reached supply agreements with all local mainstream car companies except BYD, and there are orders from multinational car companies such as BMW, Daimler and Volkswagen. Recently, it has reached cooperation with Volvo and Toyota. Ningde era is still expanding its circle of friends

with the increase of battery installed capacity, the profit is also gradually rising. In the first quarter of this year, the net profit of Ningde times reached 1.047 billion, a year-on-year increase of 153.4%. The gold absorption capacity has surpassed BYD, the second largest power battery supplier. In the first quarter of this year, BYD's net profit was 750million, but the main source of profit was the sales of new energy vehicles. To a certain extent, although the power battery has been one of BYD's main businesses, its production capacity is supplied to the new energy vehicles sold by BYD, so it is difficult to see the actual profitability of BYD's power battery business

however, BYD has seen huge business opportunities with the rise of Ningde era. In October last year, Wang Chuanfu, chairman and President of BYD, said in an interview with 21st Century Business Herald that under BYD's overall opening-up strategy, the independent splitting of BYD batteries has been put on the agenda. In addition, Wang Chuanfu also publicly disclosed that the IPO of BYD battery sector will be carried out at an appropriate time, and it is expected to be listed around 2022. BYD's battery business will form an independent company that conducts separate financial accounting

in fact, an important reason that has been limiting the development of BYD's battery business is its insufficient capacity. In BYD's strategy, batteries must give priority to ensuring internal digestion

however, since last year, BYD has begun to build new battery factories in Qinghai, Chongqing, Ningxiang, Hunan and other places across the country. On June 6 this year, Wang Chuanfu said at BYD's 2018 annual general meeting that although the total amount of batteries is large, high-quality batteries are still in short supply, and BYD will appropriately expand production capacity according to the actual situation

according to the plan, BYD's planned annual production capacity of power battery will reach 65gwh by 2020. In 2018, BYD's total installed capacity of new energy vehicle power batteries and energy storage batteries was 13.37gwh, which means that if the input voltage of the two sensors is too high (usually a few millivolts), BYD plans to increase the output of power batteries by nearly four times in two years

at present, BYD has opened its battery business to the outside world through direct sales of power batteries, establishment of joint ventures, introduction of strategic investment and other measures. In addition to the power battery joint venture established by BYD and Chang'an Automobile in July last year (with a capacity of 10gwh), BYD is negotiating cooperation with many mainstream automobile manufacturers around the world. Wang Chuanfu said at the shareholders' meeting that BYD has negotiated battery cooperation with many OEM manufacturers around the world and has received some orders

in addition to becoming Toyota's battery supplier, it is speculated that Volkswagen may also reach cooperation with BYD. During the Shanghai auto show in April this year, Volkswagen Group CEO dis sent an invitation for cooperation to Wang Chuanfu at the BYD booth. I hope you have the opportunity to come to Germany to discuss the possibility of cooperation on batteries

some insiders said that for local battery enterprises that require low turntable speed, they need to reach more in-depth cooperation with enterprises and win more orders before Japan and South Korea power batteries really enter the Chinese market. Localized industrial chain resources, cost control and technical level are important means for local battery enterprises to consolidate and even enhance market share

in addition, local power battery enterprises also need to further expand market space. Not long ago, Ningde Times announced that it would enter the electric ship industry. In addition, both Ningde times and BYD have set up power battery R & D and production bases in Europe, waiting for the opportunity to enter the European electric vehicle market

at present, the leading agglomeration effect in the field of power batteries has been very obvious. In the next two years, the top ten enterprises will occupy more than 90% of the market share, and other enterprises are expected to transform and explore other markets (there are signs at present), such as energy storage base stations, portable energy storage products, electric tools, smart homes, and digital consumption.

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